Page 354 - Design for Six Sigma for Service (Six SIGMA Operational Methods)

314 Chapter Ten

Decisions made in the product development phase of a product’s life cycle
will lock in most of the subsequent attributes of the product for many years
to come.

As competitiveness hinges more and more on a company’s ability to rapidly
and efficiently bring new products to market, product development for most
companies will become a paramount area for improvement. Considerable
evidence exists that much of the success of Japanese automobile manu-
facturers has hinged on the speed, efficiency, and effectiveness of their
product development processes.
Examples of Product Development Processes
Product development, movie film production

Product Development Performance Metrics

Product Development Lead Time
Most companies consider their product development lead time to be excep-
tionally important for determining the performance of their product develop-
ment activities. Product development lead time is particularly important
because this metric determines the speed with which new products can be
introduced into the marketplace. Companies that have high speed in product
development can introduce new products more often and adapt more
quickly to changes in customer tastes. This ultimately translates into a larger
market share for the company. Lead time is usually measured in months and
can range from fractions of a month to tens of months, depending on the
complexity and skill of a company’s product development.

Efficiency
In attempting to reduce product development lead times, however, few
companies can afford to ignore the efficiency of their product development.
In product development, efficiency is the cost of the work force and other
resources required for product development.

Robustness
In addition, the robustness (including quality, reliability, flexibility—how
well the product does what it was meant to do) of the design is particularly
important for evaluating any product development process.

Life Cycle Cost
Life cycle costs, including development costs; production costs; sales and
distribution costs; service, support, and warranty costs; and disposal costs